The Cayman Islands Monetary Authority (CIMA) has updated its Rule and Statement of Guidance – Cybersecurity for Regulated Entities following feedback received during a private sector consultation. The rule, which sets out CIMA's requirements in relation to the management of cybersecurity risks, is a clear and precise directive that creates binding obligations, the breach of which may lead to a fine or regulatory action being taken by CIMA.
The complex nature of estate and succession planning requires the careful assessment of myriad factors. However, when determining the costs associated with planning, an often-overlooked factor is the court fees which may be payable when a succession plan is set into motion. If these are not evaluated at the outset, court fees might come as a shock to heirs seeking to implement the succession plan of a deceased family member.
The Office of the Public Guardian recently launched its online service "Use a lasting power of attorney". This service enables attorneys to prove their status to service providers, such as banks or healthcare providers, by providing them with online access to a summary of the relevant lasting power of attorney (LPA). The principal benefit of the service is that it will speed up the process of verifying an LPA so that it can be used by an attorney to support a donor.
When a non-Cayman domiciliary dies owning Cayman assets, such as shares in a Cayman Islands company and interests in Cayman Islands funds, the transmission of such Cayman estate is governed by Cayman Islands law and a grant of representation issued by the Grand Court is usually required. This article deals with the procedures and documentation required to secure a Cayman grant for the estate of a non-Cayman domiciliary and highlights the pitfalls of which practitioners should be mindful.
In the current COVID-19 environment, more businesses will likely become insolvent, some of which will have an interest in Jersey property. Insolvency practitioners appointed outside Jersey in respect of an overseas person or company (or Jersey company subject to English insolvency proceedings) must be recognised in Jersey before they can deal with certain forms of Jersey property. This is because Jersey immoveable property can be transacted only by passing a contract before the Royal Court.
The judiciary continues to take progressive steps towards making succession law more women friendly. In a recent landmark decision, a three-judge bench of the Supreme Court held that daughters and sons have equal coparcenary rights in a Hindu undivided family. The decision clarifies that coparcenary rights are acquired by daughters on their birth and that fathers need not have been alive when the 2005 amendment to the Hindu Succession Act was passed.
At the recent Chambers Economic Forum, the Cayman government announced its intention to bring in a much-anticipated new regime governing corporate restructuring by the end of 2020. Until then, with the COVID-19 pandemic pushing many groups into the zone of insolvency, a number of considerations remain relevant to structures involving a Cayman entity.
The Supreme Court recently discussed at length certain key factors that may constitute suspicious circumstances and render a will invalid. The court found that several circumstances surrounding the will's execution were suspicious in nature and concluded that while the existence of one such circumstance would not generally lead to a conclusion of suspicious circumstances, when taken holistically, it was beyond doubt that suspicious circumstances existed.
The Jersey listed fund regime was introduced for listed closed-ended companies further to the Listed Fund Guide issued by the Jersey Financial Services Commission. The structure, which is modelled on the Jersey expert fund, provides for a fast-track process for the establishment of corporate closed-ended funds that are listed on recognised stock exchanges or markets and regulated pursuant to the Collective Investment Funds (Jersey) Law 1988.
As the world emerges from the COVID-19 pandemic, every industry must take stock and evaluate the changes that are here to stay and the adaptations required to suit the new environment. This article examines the developments in and resilience of Guernsey's funds industry. Notably, it is clear that the government continues to support the funds industry and recognises the importance that private equity and sustainable finance play in the longevity of Guernsey as a financial centre.
The Section 962 election has become one of the most common planning tools for tax professionals over the past couple of years. However, it is important to keep in mind that each situation is different. With variables ranging from projected actual future distributions to local country tax rates, it is always important to consider making a Section 962 election among other planning alternatives, not as the only planning alternative.
Despite various government initiatives and the promise of corporate social responsibility, Indian non-governmental organisations are facing a crisis due to the COVID-19 pandemic. However, like with most crises, there are also hidden opportunities. One such opportunity is the philanthropic investments of high-net-worth individuals, who could step in (directly or via their family offices or foundations) to help mitigate the funding crisis in the sector.
A second home in The Bahamas has been a highly sought-after commodity for international buyers from time immemorial. The Bahamas is an archipelagic nation of 700 islands and cays, with each island providing its own charm and unique Bahamian culture. As the value of real property in the jurisdiction tends to hold or gradually appreciate over time, the purchase of real property remains a viable and attainable wealth-creating mechanism.
The government has announced that it will introduce a temporary change in the law to allow wills to be witnessed using video technology during the COVID-19 pandemic. The announcement has been welcomed as a necessary response to the pandemic. Some wills are being made with a particular sense of urgency and social distancing measures have meant that the requirement for witnesses to be physically present can be an obstacle.
The States of Guernsey has adopted regulations permitting foreign limited partnerships to migrate or continue into Guernsey using the statutory migration process set out in the Limited Partnerships (Guernsey) (Migration) Regulations 2020. In conjunction with the fast-track process for the licensing of managers, Guernsey now provides an expedient and streamlined process for migrating fund structures into the jurisdiction.
The Court of Appeal recently reiterated the importance of following the natural and ordinary meaning of a fund's articles in order to ensure that redemptions are effective. This is particularly important in the context of a master-feeder fund structure. Although the decision is consistent with longstanding authority, it does highlight the importance of ensuring that the redemption procedures set out in a master fund's articles are strictly adhered to as a matter of practice.
The government has published its response to the technical consultation on the implementation of the EU Fifth Money Laundering Directive (5MLD) and the Trust Registration Service (TRS). The government appreciated that the broad scope of the changes to the TRS proposed in 5MLD raised concerns in the United Kingdom, and this understanding was reflected in its technical consultation.
In a news cycle that can seem relentlessly gloomy, there are some positive stories to be told and the increased activity in private equity is one of them. This article looks beyond the financial services industry at the wider social and economic benefits of this growth. For instance, private equity is becoming increasingly active in the medical and healthcare sector, which, in turn, has led to a large number of private equity investments in areas such as technology, software and data.
Over the past quarter, the Cayman Islands enacted a number of changes to laws and regulations which affect, or will affect, Cayman funds, including with respect to the Private Funds Law, the administrative fines regime, disclosure requirements and the automatic exchange of information portal. This article is intended as a handy reference guide with respect to the recent changes and updates.
Directors' duties are the duties owed by executive and non-executive directors to the companies to which they are appointed and are personal to each director. By comparison, corporate governance is the collection of principles and practices surrounding how a company is operated and is the collective responsibility of the board of directors as a whole rather than each individual personally.